Policy Terms
Short Term Rental
Definition
A short-term rental is a residential property rented to guests for periods typically less than 30 days, often through platforms such as Airbnb, Vrbo, or similar services. Standard homeowners policies generally exclude or severely limit coverage for properties used as short-term rentals because the transient occupancy increases liability exposure and property damage risk. Owners may need a specialized short-term rental policy, a landlord policy, or a specific endorsement to maintain proper coverage. Host platform liability programs (e.g., Airbnb's AirCover) provide limited protection but are not a substitute for a comprehensive insurance policy.
In Zach’s Words
“If you're renting your place out on Airbnb or Vrbo — even just a few weekends a year — your standard homeowners policy probably doesn't cover you the way you think it does. Most carriers consider short-term rental activity a business use, and that changes the risk profile entirely. Strangers coming and going, higher liability exposure, more wear and tear. Some carriers will let you add an endorsement for occasional rentals, but if you're doing it regularly, you'll likely need a dedicated short-term rental or landlord policy. And don't count on Airbnb's AirCover to save you — it has gaps and limitations. The smart move is to get proper coverage in place before your first guest checks in.”
— Zach Nadler, CIO